FILE PHOTO: Logo of SAA is seen on an aircraft at O.R. Tambo International Airport in Johannesburg

SAA will not be paying staff salaries on time

By Staff Reporter Nov 21, 2019

Share this article:

JOHANNESBURG - Acting CEO of strike-hit South African Airways (SAA), Zuks Ramasia has stated that the state-owned airline will not be able to pay some staff salaries on time for the month of November.

SAA is running out of cash because of the week-long strike over wages and job cuts.

Ramasia said in a statement that the airline would not be able to fulfill salary payments to employees on the scheduled date.

She said, "SAA continues on a critical and sensitive path to secure R2bn from lenders to fund the day to day operations. SAA has not yet achieved this critical milestone. Furthermore, any funding from the lenders will need to be supported by a government guarantee that SAA will have to obtain."

Ramasia said that SAA could not achieve the above mentioned conditions because of the current negative sentiment which surrounds the airline currently, as well as operational challenges.

Two trade unions at the state-owned airline said they would continue talks with SAA on Thursday to try to break the deadlock on a strike over wages and job cuts that has lasted a week.

The National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (SACCA), which have been leading the strike, said in a statement that they hoped to find an acceptable compromise in the talks with SAA.

Trade union Solidarity has revived its plans against SAA by announcing that it is bringing an application to place the cash-strapped airline in business rescue.